Market movers for the day ahead - Rabobank

Analysts at Rabobank points out that the Eurozone will publish M3 money supply for February, which is seen growing 4.6% y/y and final consumer is expected to be in line with the initial estimate of 0.1.

Key Quotes

“Across the Pond, Atlanta Fed President Bostic, who is a voting member this year, will be speaking at an economic conference. Last Friday Bostic revealed that he prefers three hikes this year, although he also admitted that four moves would be warranted if growth accelerates more than currently envisaged. “If it comes in less than our models predict, then two could be prudent”, he told reporters.”

“New York Fed Chief Dudley stuck to his script on financial regulation yesterday, giving nothing away either on policy or on the topic of his successor when he steps down in the middle of the year. Press reports, however, have indicated that the favoured candidate for the role is John Williams.  Williams is currently the president of the San Francisco Fed, a role he took over from Janet Yellen in 2011.”

“The Chair of the NY Fed has a permanent vote on the FOMC and the seat often seen as the second most important position after the Fed Chair.  Williams is an accomplished economist and his background is generally considered to be complementary to Fed President Powell who is the first non-economist to take the Chairman’s position in 30 years.  Although Williams was previously considered to be a dove, he has recently shed this reputation by indicating that he supports the Fed’s dot plot of 3 Fed rate hikes this year.”

“Supported by tax cuts and strong labour market the underlying trend in US consumer sentiment should remain solid as reflected in the consensus expectation of 131 in March – up from 130.8 in February, which was highest level since 2000.”

“The US Treasury will offer USD 35bn of 5-year bonds following yesterday’s auction of USD 30bn of 2-year papers with the highest yield since August 2008.”